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) Ample Liquidity for Us Telecoms in Current Market Environment
U.S. telecommunications companies have, in general, solid liquidity to withstand current credit market volatility and meet their debt maturities, according to a Fitch Ratings report.Since the previous liquidity crisis of 2001-2002, the telecom industry has experienced a period of consolidation, providing most operators with increased scale and diversity. This consolidation has led to greater financial stability and flexibility due to increased scale and diversity of operations. Operators have taken advantage of the low interest rate environment and previously aggressive lending standards in the loan market to 'push-out' maturities beyond 2009. Furthermore, Fitch notes that bankruptcies essentially removed the smaller, weaker players from the industry.
"The industry is much better positioned to weather liquidity issues compared to five years ago," said Michael Weaver, Managing Director, Fitch Ratings. More>>
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) Desperate debtors risk all with secured loans
Habitual viewers of daytime television will have seen Carol Vorderman in adverts, cashing in on her mathematical prowess on Channel 4's Countdown to promote secured loans. Her sales pitch for Firstplus, a division of Barclays, has prompted several protests by campaign groups.The reason why she gets such criticism is that secured loans are often taken out by people in financial distress. Managing your Debt, a new book published by Which?, warns that demand for secured loans is growing rapidly as homeowners search for solutions to their debt problems. The Consumer Credit Counselling Service (CCCS), a debt advice charity, has seen a sharp rise in the last year in the number of homeowners getting into problems after signing up for a secured loan.
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) Delta execs say merger is a possibility
Delta Air Lines' top executives signaled Tuesday that the airline might want to buy another carrier eventually, but its emphasis for now will be on improving its financial position by paying down debt, slowing airplane purchases and other moves."We believe the right transaction for all Delta constituents ... could add real value," Delta President Ed Bastian said Tuesday in a conference call with reporters.
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) Facility Closures and Layoff Announcements (Oct. 14-20)
The following future closings and permanent mass layoffs were reported in Alabama. · Beaulieu of America is laying off 140 employees at 10235 Al Highway 168 in Boaz on Dec. 3. · GAF Materials Corp. is laying off 97 employees at 2400 Emogene St. in Mobile on Nov. 30. · KB Toys Inc. is closing down and laying off 58 employees at 3326 Atlanta Highway in Montgomery on Dec. 15. · Pemco Aeroplex Inc. began laying off 300 employees at 1943 50th St. North in Birmingham. · Siemens VDO Automotive Electronics Corp. has started laying off 48 employees at 100 Electronics Blvd. SW in Huntsville. · WestPoint Home is closing its plant at 3300 23rd Drive in Valley on Nov. 29 affecting 300 employees. The following future closings and permanent mass layoffs were reported in California. · BNC Mortgage LLC is closing down and laying off 175 employees at 1885 Gateway Blvd. More>> - (
) Japanese 20-Year Bonds Rise as Investors Demand Higher Yields
Sept. 26 (Bloomberg) -- Japanese 20-year bonds rose, pushing yields down the most in more than two weeks, as investors sought higher returns than those offered by shorter- maturity notes.The difference in yield between two- and 20-year debt narrowed, indicating an increase in demand for longer-maturity securities. Yields on two-year notes fell to a seven-month low on Sept. 11 on concern rising corporate borrowing costs globally will curb economic growth. The turmoil deterred the Bank of Japan from raising interest rates in August, according to minutes of the meeting released yesterday.
``The sector I can recommend right now is the 20-year because that has been left cheap,'' said Naka Matsuzawa, chief strategist at Nomura Securities Co. in Tokyo. Investors should sell bonds maturing in seven and 10 years and avoid two-year notes, he said. More>>
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) Superintendents makes plans for new schools as they wait on bond money
Opinions are mixed on the effect a $1 billion state bond issue coming in a single bond sale instead of increments over two years would mean to construction projects planned in school systems in Talladega and St. Clair counties.For the Talladega County School System, Superintendent Dr. Cindy Elsberry said it wouldn�t make a difference when the system received its share, an estimated $6 million, because of the length of the project.
�I don�t think the impact on us will be very significant,� Elsberry said. �We don�t need all of the money at once. It will take us 18 months to two years to complete the construction project. We will use parts of the money as we need it over time.�
The major project planned in Talladega County will be the consolidation of Sycamore and Winterboro schools. More>>